Bankera Founders Accused of Misusing ICO Funds for Luxury Real Estate Purchases
Introduction
Did the founders of Bankera, a crypto fintech firm, divert millions from their 2018 ICO to buy luxury properties worldwide? A recent investigation by the Organized Crime and Corruption Reporting Project (OCCRP) suggests just that. The report alleges that nearly half of the €100 million ($114 million) raised in Bankera’s ICO was funneled into a Vanuatu-based bank owned by the founders, which then funded high-end real estate acquisitions.
The Allegations: How ICO Funds Were Diverted
According to leaked company records and bank statements obtained by the OCCRP, Bankera’s founders—Vytautas Karalevičius, Justas Dobiliauskas, and Mantas Mockevičius—transferred a significant portion of ICO proceeds to a bank in Vanuatu, a Pacific Island nation known for its lax financial regulations. The bank, reportedly purchased by the trio, then issued loans to companies owned by the founders to acquire luxury properties, including:
- A villa in the French Riviera
- High-end real estate in Lithuania
The leaked documents also indicate that millions were loaned directly to the founders for “personal use.” Lawyers for the founders denied fraud but refused to comment on specific transactions.
Bankera’s Broken Promises to Investors
Bankera initially positioned itself as the “bank for the blockchain era,” offering crypto-friendly financial services and enticing investors with:
- Discounted rates on Bankera products
- Weekly BNK token payouts via a revenue-sharing model
- A promised EU banking license
However, investors soon noticed red flags:
- Weekly payouts dropped significantly below projections
- The revenue-sharing program was abruptly halted in 2022
- The EU banking license never materialized
Today, Bankera’s BNK token has a fully diluted valuation of just $975,710—a staggering decline from its €100 million ICO raise.
The Bigger Picture: ICO Accountability in Crypto
This case highlights critical issues in the crypto fundraising space:
1. Lack of Transparency in Fund Usage
Many ICOs fail to provide clear, auditable records of how raised funds are allocated, leaving investors vulnerable to misuse.
2. Regulatory Arbitrage Risks
By routing funds through Vanuatu—a jurisdiction with weak oversight—the founders allegedly bypassed stricter EU financial regulations.
3. The Importance of Investor Due Diligence
This case underscores why investors must:
- Verify team backgrounds
- Demand transparent fund management
- Look for third-party audits
Conclusion: Lessons for Crypto Investors
The Bankera case serves as a cautionary tale about the risks of unregulated crypto fundraising. While the founders deny wrongdoing, the allegations highlight why:
- Regulatory frameworks for crypto projects need strengthening
- Investors should prioritize projects with verifiable fund management
- The industry must develop better accountability mechanisms
For those considering ICO investments, thorough due diligence remains the best defense against potential fraud. Always verify claims, scrutinize fund allocation plans, and be wary of projects promising unrealistic returns.
